Ffollowing the success of the “new improvements to chequing accounts” (announced last August), JP Morgan JPM has now offered a few additional features. From 2022, the bank will offer Chase customers more ways to avoid such charges.
The new “improvements” include:
1. Provide customers with early assessment of direct deposits. This way, customers will be able to use their direct deposit payroll two business days in advance.
2. Offer a day to “catch up”. By virtue of this, JPMorgan clients will have time until the end of the next business day to reduce their account balance to $ 50 overdrawn or less. Therefore, they may overdraft the service charge from the day before.
JPMorgan noted that the new tools have been part of its efforts over the past decade. These include launching a no-fee bank account overdraft service, Chase Secure Banking, processing customer debits in the same order as they occur, and removing additional fees on accounts that are continually occurring. discovered.
In addition to the tools mentioned above, JPMorgan, in August, extended the overdraft buffer to $ 50 from $ 5 and also eliminated the $ 34 fee (known as a returned item fee) that was charged in the event that Chase failed. would not pay a check or an electronic payment. due to insufficient account balance. The company noted that it has helped more than 2 million customers save on overdraft service fees.
Jennifer Roberts, CEO of Consumer Banking at JPMorgan, said: “We know customers incur late fees on large invoices. With overdraft, we help our customers avoid late fees and potential negative impacts on their credit score, and with debit card coverage, customers can continue to make purchases with their debit card.
JPMorgan shares have risen 26.4% so far this year, underperforming the industry34.8% increase.
Image source: Zacks Investment Research
Currently, JPMorgan wears a Zacks Rank # 3 (Hold). You can see The full list of Zacks # 1 Rank (Strong Buy) stocks today here.
What are other banks doing?
It should be noted that the practice of charging banks overdraft fees and insufficient fund fees (NSF) angered U.S. lawmakers during a Senate hearing in May. As a result, several banks have taken steps to reduce these fees or have provided tools for their customers to limit the fees.
Last week, A capital letter COF announced the elimination of overdraft fees and NSF fees for its consumer banking customers. This plan will come into effect early next year. At the time, COF said it was the only one of the top 10 retail banks in the United States to make the decision to eliminate overdraft fees altogether.
Apart from Capital One, many small banks like Allied financial ALLY and Financial regions RF, among others, has taken similar steps. Earlier in June, Ally Bank – the digital bank and a division of Ally Financial – removed overdraft fees on all accounts, effective immediately. All ALLY customers were eligible, with no additional requirements or conditions to be met.
Likewise, in October, RF, through its subsidiary, announced a new checking account with no overdraft fees – the Regions Now checking account. The account will charge a low, flat monthly fee of $ 5 and offer traditional checking account features such as check writing and mobile and online banking with bill payment.
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